There are plenty of dividend shares to choose from on the ASX 200 index.
Two popular options are listed below. But are they buys this month? Let's see what analysts are saying:
NIB Holdings Limited (ASX: NHF)
NIB could be an ASX 200 dividend share according to analysts at Goldman Sachs.
The broker likes the private health insurer due to the positive outlook for its core and non-core businesses. Goldman explains:
We have a Buy on NHF reflecting 1) Strong growth / recovery in non-ARHI businesses especially in Travel and IIHI. 2) Strong PH growth and market share gains in ARHI. 3) Buffers built across ARHI expenses, investments, write downs and provisioning that can be unwound to support UOP growth over time.
As for dividends, Goldman expects fully franked dividends per share of 31 cents in FY 2024 and 33 cents in FY 2025. Based on the current NIB share price of $7.39, this will mean 4.2% and 4.5%, respectively.
Goldman has a buy rating and $8.75 price target on its shares.
Transurban Group (ASX: TCL)
Another ASX 200 dividend share that is popular with income investors is Transurban. It is Australia's largest builder, owner, and operator of toll roads.
Analysts at Bell Potter believe that the company's shares are in the buy zone right now and are tipping generous yields and sizeable upside. The broker commented:
We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.
Bell Potter has a buy rating and a $15.90 price target. As for income, it expects a 5% dividend yield in FY 2024.